$92 K Per Job Saved or Created
While Obama and the Democrats and MSM is cheering the slight uptick in the economy they are failing to fill in the blanks as to just what caused the uptick. It was indeed the Stimulus money. Cash for Clunkers sold a lot of cars; foreign cars and Fords, not Chrysler or GM of which we the tax payers own 60%. Wonder why no one wanted to get their $8000 to buy a Chrysler or General Motors product? Is it possible the people just don’t like their cars and won’t buy them no matter how much the government (read that tax payers) picks up the tab one of these cars? Yep. I think so. but remember these companies and especially the Obama backing United Auto Workers Union members were just “to big to fail”.
On the heels of a report showing that the “cash for clunkers” program cost $24 k per car sold now comes word that the stimulus have saved or created jobs for the bargain basement price of just $92 k each.
Considering the actual costs of the car purchased we tax payers would have been better off to just have had people sign up who wanted a car and bought them the car outright. Yes, just stand outside the dealerships and hand out vouchers for a new ford instead of the billions that we did hand out and the bungling and cheating that cost the tax payers billions to the tune of $24,000 for each car that sold under the program.
And remember the buyers still had to pay the rest of the cost of the car themselves beyond the $8000. But then this is how the government does things; it’s call the US Postal Service syndrome.
Was another reason we saw an uptick in the economy the $8000 being given to home buyers to buy a home? You better believe. And while you are thinking that over you may take a look at who these homes are being sold to—anyone the Realtors can drag into their office, that’s who. Real
Estate sales people are just like everyone else who works on a commission basis (like car salespeople!): they don’t give a hoot who they make a “deal” for or with. They have their commission and are long gone when the person who was convinced they could buy a home is thrown out into the street and becomes homeless when they can no longer make the mortgage payments.
I truly wish the following story was the exception to the rule, but I know and you know this is the rule. If it weren’t we wouldn’t have had the first Mortgage Crisis and certainly would not be on the fast track for another one. Note: Remember to thank Rep. Barney Frank for both!:
20 Year Old Buys Home With $183,000 FHA Loan And Just 3.5% Down
Fraud Reported in Program to Help New Homebuyers – NYTimes.com
Denise Tejada bought a house last month at the age of 20, thanks in large part to a loan guaranteed by the Federal Housing Authority.
This story offers a dramatic demonstration that, despite the housing bubble causing the worst economic downturn in generations, the ideology of home ownership is alive and well in the United States and still being supported by the government.
Without question, Tejada’s loan is toxic–to her and to the taxpayers who are backing the loan. Her house cost $155,000. Tejada’s loan was apparently made on a micro-down payment of just 3.5%, the minimum down payment to qualify for an FHA loan. On top of this, however, she got an additional government backed loan to make improvements. Her total loans amount to $183,0000. In short, she was immediately underwater on her new house.
The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on. She’s paying 54% of her income to make the mortgage payments. She earns that income by holding down one full time and two part time jobs. Obviously, this woman has a strong work ethic. But it also means her income is precarious. With unemployment still rising, she obviously should be worried about losing one of her three jobs. A loss of one of them would likely leave her unable to make the debt payments.
Now we are being told loud and clear how many jobs were “saved” or “created” with the Stimulus money. Now aside from the fact that many of these are government jobs where the states will have to lay off or raise taxes to allow the newly hired to keep their jobs, or temporary works jobs, the fact is each job cost you and me $92,000! So much more could have been done to stimulate the economy if the government had run a lottery and just handed out $92,000 to some lucky unemployed person until the billions spent on this program was all handed out. Boy what a boost to the economy that would have been as all these people ran right out to spend their loot. Heck it might even have helped Chrysler and GM if a few of these people decided to buy new cars made by either one of these tax payer owned auto companies.
On the heels of a report showing that the “cash for clunkers” program cost $24 k per car sold now comes word that the stimulus have saved or created jobs for the bargain basement price of just $92 k each.
You might also find this interesting: “The Obama administration’s thoroughly “scrubbed” stimulus jobs report includes a $26,174 project that purportedly created 450 jobs.”
There will possibly come a day when I will look back at all this and just shake my head and say, “Damned but people were fools to elect those people to Congress. What were they thinking?!”.
At least I sincerely hope such a day will come. BB
